OVER $40 MILLION TO BE PAID TO VICTIMS
IN EEOC SEX BIAS SUIT AGAINST MORGAN STANLEY

Administrator Decides Morgan Stanley Must Pay Entire Claim Fund
Set Up by $54 Million Discrimination Suit Settled Last Year

NEW YORK  The U.S. Equal Employment Opportunity Commission (EEOC) announced
today that a $40 million sex discrimination claim fund  which was established
pursuant to the $54 million landmark settlement last year with brokerage giant
Morgan Stanley  will be distributed to the 67 eligible discrimination
victims who came forward to participate in the claims process.

The EEOC's lawsuit, Civil Action 01-8421, filed in U.S. District Court for
the Southern District of New York on September 10, 2001, alleged that Morgan
Stanley had engaged in a pattern or practice of sex discrimination since 1995
against Allison Schieffelin and a class of other women, all employed in Morgan
Stanley's Institutional Equity Division (IED). The charges included claims that
Morgan Stanley regularly excluded women from work-related outings, paid women
less than male peers, and denied them warranted promotions.

The case settled on July 12, 2005, after a jury had been selected and just
prior to opening arguments slated to occur with Judge Richard M. Berman presiding,
when Morgan Stanley agreed to enter into a consent decree with the EEOC and
pay $54 million. The monetary award was structured so that Allison Schieffelin
 who initiated the EEOC's investigation by filing a charge of discrimination
in 1998  was paid $12 million; $2 million was to be spent by Morgan Stanley
on new diversity initiatives in the division; and $40 million was earmarked
for distribution to eligible claimants via a claims process to be administered
by former federal Judge Abner Mikva as "special master." The three-year
consent decree also provides for increased anti-discrimination training for
associates and managers in IED and Morgan Stanley's hiring of an outside monitor
to assess the company's compliance and field employee complaints.

In the event that the special master did not distribute the entire $40 million
claim fund, the consent decree allowed for any remaining money to be used to
fund a scholarship program dedicated to women pursuing financial careers. As
Mikva awarded the entire $40 million, plus accrued interest up to June 1, 2005,
only a small amount of money will be set aside for this cause.

"This outcome was anticipated and warranted by the facts," said
Michelle Caiola, Senior Trial Attorney from the EEOC's New York District Office.
"After a rigorous written claims process, a neutral third party determined
that the claims submitted were valid and distributed the claim fund accordingly."

Elizabeth Grossman, the EEOC's New York District Acting Regional Attorney,
added, "We are hopeful that this suit has changed discriminatory practices
common to Wall Street. It should signal the industry that no matter how well-regarded
a financial institution may be, there is no safe harbor for employment discrimination."

In addition to enforcing Title VII, which prohibits employment discrimination
based on race, color, religion, sex (including sexual harassment or pregnancy)
or national origin and protects employees who complain about such offenses from
retaliation, the EEOC enforces the Age Discrimination in Employment Act of 1967,
which protects workers age 40 and older from discrimination based on age; the
Equal Pay Act of 1963, which prohibits gender-based wage discrimination; the
Rehabilitation Act of 1973, which prohibits employment discrimination against
people with disabilities in the federal sector; Title I of the Americans with
Disabilities Act, which prohibits employment discrimination against people with
disabilities in the private sector and state and local governments; and sections
of the Civil Rights Act of 1991. Further information about the Commission is
available on the agency's web site at www.eeoc.gov.